After a long day of work, you decide to spend the night in a hotel and order room service, which comes out to about $150. You recently spent $40 on fuel while travelling to your rental property in order to supervise an urgent repair. However, you should be aware that you cannot deduct expenses related to board or lodging (a term referring to food and shelter). Travel expensesĭo you need to travel a lengthy distance in order to visit your rental property? If so, you can deduct some of these expenses from your annual income.Īs a rental property owner, you can deduct the following travel expenses related to the following situations and tasks: So, how much does this amount to? Well, if you paid the average amount for property tax in Ontario (approximately $2,281), you’d be able to deduct $570.25 from the rental income that you generated.Īlthough this may not make up for the lack of income, it is a beneficial silver lining. When it comes to filing a vacant rental property tax deduction Canada has a handful of requirements that need to be met.Īlthough rental property owners aren’t able to deduct the lump sum of their annual property tax, they can deduct a portion of it if the property is (or was) vacant.įor instance, if your rental property was vacant for three months, you would be able to deduct three months’ worth of your property taxes on the building and the land that the building is built on. With this in mind, you can see why many landlords opt for third-party labourers and employees. Once again, landlords cannot write off their labour. Rental property owners can deduct employee and contractor-related expenses. If your rental property is starting to feel like an overwhelming responsibility, it may be time to hire an employee or find a reliable contractor. Sometimes, you can’t do everything by yourself, which is ok. You could write off expenses related to the replacement (parts, shipping of parts, tools, etc.), but you can’t put a monetary value on the time that you spent on the replacement. Imagine that you needed to replace the doorbell at one of your rental properties. Landlords should know that they cannot write off the value of their labour. If you paid to have any aspect of your rental property repaired, replaced or maintained, you can write off the related expenses. If you feel like you’re overpaying for insurance in Canada, you should reach out to a Surex insurance advisor.Īt Surex, our advisors take their jobs seriously - so, when you ask for insurance quotes, expect to receive the cheapest, most competitive options on the market. Writing off your premium is a great way to save on insurance, but it isn’t the only way. So, if your policy covers your rental property for five years, you can only deduct costs from the current fiscal year. However, rental property owners should know that they can only write off one year’s worth of expenses. Thankfully, rental property owners in Canada are able to write off their insurance premiums. There’s no denying that insurance can be expensive, especially if you have extensive coverage. Doing this allows you to deduct a portion of said expenses from your annual taxable income.Ĭontinue reading to learn what you need to write off in order to make the most out of your next tax deduction on rental property units in Canada. If you own one or more rental properties in Canada, you’re able to write some of the related expenses. Thankfully, you can get some of your hard-earned money back. This means that you have to spend a bit of cash before marketing your properties. As a landlord, you need to treat each of your properties as a business. Have you ever heard the saying, “you need to spend money to make money”? Well, it’s true you need to invest in your business before it starts generating any reasonable amount of profit.
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